PHILIPPINE Business Bank (PBB), the banking arm of Zest-O group founder Alfredo Yao, grew net profit in the first six months by 16.2 percent year-on-year to P300.2 million as earnings from core lending activities as well as non-interest earnings expanded at a double-digit pace.
PBB’s net interest income rose by 12.7 percent year-on-year to P1.2 billion as the thrift bank expanded its loan book by 10.4 percent to P38.5 billion in the first six months compared to the previous year. Net interest margins averaged at 4.3 percent.
On the funding side, PBB’s total deposits increased by 2.2 percent year-on-year to P47.6 billion.
Non-interest income from service charges, fees and commissions also rose by 12.2 percent year-on-year as well as miscellaneous income which increased by 15 percent, boosting overall non-interest income by 13.3 percent year-on-year to P71.5 million.
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“Historically, the treasury business is a key contributor to PBB’s income performance. In 2012, core
income was only at P71 million, which means about P90 out of every P100 in pre-tax pre-provision profits (PTPP) came from treasury. Today, the bank’s maturation is evident – we now make P90 out of every P100 in PTPP from our core deposit-and-lending business,” PBB president and chief executive officer Roland Avante said.
“The treasury business, while no longer the centerpiece of PBB’s profitability, will always play a pivotal role in the bank’s business operations. We will be opportunistic in our trading activities,” he added.
